Oracle Case Study

Oracle Corporation SWOT and PESTLE Analysis

Introduction

The following market environment analysis is based on the Oracle Corporation which is a multinational computer and technological busines firm. The paper will state the SWOT and PESTLE analysis which are some of the effective marketing tools used by the company to analyse the external and internal factors related with the business firm. A SWOT analysis assist to observe and analyse the external that is opportunities and threats factors the and internal factors that is strength and weakness factors. SWOT analysis is a strategic organizing technique for identifying strengths, weaknesses, opportunities and threats in company competitive or project planning when writing case study. On the other hand, the PESTLE analysis is a method for gaining a comprehensive view of an industry's surroundings the macro environment. PESTLE analysis components are acronyms for Political, Economic, Social, Technological, Legal and Environmental attributes. It requires a person to have a sense of the factors that might affect a new business or sector.

Company Background: Oracle Corporation

Oracle is an American multinational computer and technological corporation with its headquarters in Austin, Texas, United States. Founded on June 16^th, 1977 by Larry Ellison, Bob Miner and Ed Oates, the company sells database software, cloud engineered system, enterprise software which has its own brand database management system. Therefore, in 2020, the organisation is recognised as the second largest software organisation by market capitalization and revenue share. As per the 2020 reports, there are 135,000 employees working all throughout the world. Oracle's E-delivery service also known as Oracle Software Delivery Cloud, provides with generic downloadable Oracle software and credentials. It designs, manufactures and sells both hardware and software products, as well as offering services that complement them. Many of the goods have been added to Oracle's portfolio through acquisitions.

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SWOT Analysis

• Strength:

Firstly, the major strength of Oracle can be recognised with its great performance in the market. Oracle, being one of the largest corporations in its field, has a number of benefits that help it succeed in the business. These attributes not only help it maintain market share in existing areas, but also help it penetrate into new ones. Secondly, it has built up a great distribution network where Oracle has earned a reputation for successfully entering the market. The expansion has enabled the business to diversify its streams of revenue and reduce market cycle risk in the retail marketplace. Oracle has developed a dependable network infrastructure that can reach the majority of its possible market over time. Next, it can be analysed that, Oracle through acquisitions and mergers it had a proved a track record of successfully combining equity participation. In recent years, it has successfully incorporated a number of technological advancements to optimize processes and develop a trustworthy supply chain.

• Weakness:

Firstly, the product of Oracle that are offered in the market lacked an overall development.  Even if the product is a commercial success, its placement and unique selling proposition are not well established which could escalate to competitor threats in this segment. Secondly, investment in R&D is lower than that of the company's fastest-growing companies. Despite spending more on research & innovation than the industrial average, Oracle has been unable to challenge in terms of creativity with the sector's leading firms. It looks to be a well-established business eager to release products with business qualities. Lastly, the company has been unable to understand the challenges faced by new competitors, it lost minor market share in specialized sectors. To resolve these concerns, Oracle will need to develop an internal control mechanism that includes real influence from the store employees on the field.

• Opportunity:

Oracle can use the technological advances to implement a differentiated pricing approach in the new market. The strategy of market penetrating pricing strategy will allow the company to keep its committed consumers by providing excellent service even while enhancing customer experience through additional value-oriented solutions. On the other hand, there is opportunity for the new consumer behaviour trends that may open new business chances for Oracle. It offers the employees a wonderful chance to develop into new markets while also generating new sources of revenue. As the system evolves, rival advantages will diminish, permitting Oracle to strengthen its effectiveness in comparison to its competitors.

• Threat:

The present physical infrastructure-driven supply chain structure may be endangered by shifting consumer buying behaviour through online networks. On the other hand, rising wage levels, companies possess such as $15 an hour, and rising costs in China may invested enormous strain on Oracle's revenue. Therefore, an increasing trend toward unilateralism in the American economy may prompt a strong reaction from other governments, limiting foreign sales. The demand for highly expensive investments is periodic and any unforeseen event during the peak season can have a short- to medium-term impact on the firm ’s profitability. Also read hr case studies with solutions.

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PESTLE Analysis

• Political:

The regulatory processes are in accordance with the international standards, which has benefited the country in enhancing its “ease of doing business” rating. International Trade & Other Treaties in United States has a long history of signing international treaties with a range of international partners. The government of has followed the treaties signed by past governments, ensuring that the legal system and legislation are consistent. Threat of Terrorist Attacks In the post-9/11 environment, Oracle Software has to live with the possibility of a terrorist operation. To limit the losses caused by terrorist attacks, wise policy should have been to purchase insurance and other kinds of balancing products.

• Economical:

In comparison to the US markets, where income level is still below 2007 levels and has not improved in real terms since the early 1980s, the country's household income has steadily increased in recent years and a half. By implementing a distinctive marketing plan, Oracle Software may capitalise on this trend and grow its business beyond its traditional customers. The pace of inflation may have an impact on the sales for Oracle products. Higher inflation may force Oracle Software to increase prices in perfect agreement with inflation, resulting in reduced brand loyalty and continuous cost-cutting efforts. In these circumstances, cost-based pricing may be a poor technique.

• Social:

The social structure in the US economy is slowly moving towards the older generation, which has more disposable income than the relatively young age. Oracle Software should carefully analyse both. The saving culture in the United States and China is significantly different. While China's savings rate is about 30%, it is much below 15% in the United States. This consuming and savings culture has a strong influence on both the type and magnitude of expenditure. The birth rate on the other hand, is a strong predictor of future demand. This is because of a somewhat higher birth time and increased amount of immigration; the United States has avoided the stagnated economy of the European Union.

• Technological:

Investing in R&D at different levels can be emphasised on good potential of creating a self-sustaining ecosystem that fosters creativity if there is a lot of money committed in technological development. Oracle Software can take advantage of such a possibility to hire the best people in the business. Transparency & digital drive is a feature of Oracle Software that allows it to digitalize various processes in order to combat injustice in the local economy. The business strategy relies heavily on E-Commerce even before entering a new market, it should assess the e-commerce network, technical infrastructure and other factors. Oracle Software should evaluate the climate for intellectual property before starting a business.

• Legal:

Even if the government has the best laws, they are ineffective if they are not enforced in a reasonable time. Given the types of legal issues Oracle Software may confront, Oracle Software would conduct primary research to determine how long it usually takes to resolve a court lawsuit in United States Oracle Software must identify what the country's data standards are and what it must do to compliance with them. Most European countries, for example, now want EU citizen data to be retained only in European countries. You can also take help from book report writing help to write extraornary paper.

• Environmental:

The corporation should concentrate its efforts and resources on renewable technologies and the budget is spent to alternative energy sources. Environment standards law enforcers play a key role in maintaining norms. However, in developing countries these organisations frequently use delaying tactics to collect payments. Oracle Software should really be aware that such practises exist in United States. It is the country's responsibilities to deal with the Paris Agreement and broad degree of conference in the country on the Paris Climate Agreement, for example, Trump's failure to honour US pledges has produced an atmosphere of instability.

Conclusion

Hence, it can be concluded that from the above analysis its easier to understand the internal and external market environment factors. With the assistance of PESTEL analysis it can be identified that it is a useful business tool that includes a comprehensive review of macro-environmental elements that affect the economic growth. Each element contains different factors that affect the strategic decision-making procedure of business organisations such as Oracle, ranging from political matters to environmental factors. Oracle sustains its leadership position by thoroughly examining and evaluating its SWOT analysis.